Midwest getting new aircrafts????

[RIDETHELIGHTING]

Also those fares are before taxes and fees

 

[Kharma Police]

for simple comparison purposes.

just looking at MKE-LGA for a fare for 7/3 and returning 7/6.
AAI $178 (web special), $368.50 (adv coach)
MEH $333.


now MKE-BOS:
AAI $266
MEH $274.

now MKE-DCA:
AAI $222.50 (web special), $297.50 (adv coach)
MEH $424

I would not be surprised if we scale back. I never had a good feeling about expanding in MKE. I was always skeptical of the argument of drawing passengers from northern Chicago (too close to ORD). Thankfully, we only have four leased gates to deal with, not a whole airline.

 

[CitationLover]

Also those fares are before taxes and fees

actually the AAI ones are after taxes since they quote their fares per leg (i pulled the total after selecting each leg) and the MEH ones are before taxes so the fare differential is even more than depicted.

 

[RIDETHELIGHTING]

Thankfully, we only have four leased gates to deal with, not a whole airline.

BF said we dodge a bullet by not buying MEDX.

 

[scarlet]

How will TPG get their 20-25% return when they bought for what 15-17.00 a share and now MIdwest is proably at 2.00, if it was still listed....

Well I just look at the mgt. types and see Midwest turn to 50 seaters-and laying off people and getting rid of the 80s...and they say Airtran is losing their shirt? Which all that could be Airtran anytime....

MKE station mgr, says AT is very happy with the flights in MKE.??

 

[maxblast72]

Fuel CASM is driving the problems these days anyways.

Your right, Fuel CASM is now approaching 50% of total CASM. This just increases our advantage as the 737 burns the same amount of gas as the 717 but yet carries 38 more passengers than your 717's (and I won't even begin to compare our 737's with your MD-80's).

 

[maxblast72]

for simple comparison purposes.

just looking at MKE-LGA for a fare for 7/3 and returning 7/6.
AAI $178 (web special), $368.50 (adv coach)
MEH $333.


now MKE-BOS:
AAI $266
MEH $274.

now MKE-DCA:
AAI $222.50 (web special), $297.50 (adv coach)
MEH $424

How does your management know how many seats were bought at discount and how many were bought at full fare business class? I think the only one that know the true avg fare on our routes out of MKE are our bean counters in MCO. I don't even think you will find that information in our second quarter earnings release when it comes out.

 

[maxblast72]

You also have to ask how much of this traffic is MKE origination or destination. I believe our BOS, LGA, and DCA flights are timed to connect with our west coast service and vice versa. That means the bigger markets we are actually going after our big west coast cities to the big northeast cities with origination MKE traffic as gravy on top.

 

[FlyWolf]

Back to Midwest getting a replacement aircrafts, its almost certain that it will be the Airbus now, I think any 737 that becomes available are going to (and I am not sure) SWA and AA who wants to replace the 80's as fast as they can.

 

[maxblast72]

BOTH carriers are struggling with the current environment. bragging about coming in and "wrecking" our summer yields is suicide in this environment, but I guess AAI can issue additional convertible bonds to generate much needed cash. redeploying to "florida" routes ain't good either: florida is another LOW YIELD market as most vacation ones are.

and our management (as yours wrt to ours) has a GREAT idea what your yields are. we simply match your walmart undercut prices and can directly witness and compare. i should hope your CASM is lower than ours as your airline is a lot younger than ours. when your airline gets to our current age (24) and has the seniority of our workers then you can directly compare CASM's.

Why wait 24 years to compare CASM's. The battle is now in 2008 for market share in MKE. The only thing that matters in this battle is Airtran's 15 year CASM vs Midwest's 24 year CASM. And Airtran can be profitable at a lower yield than Midwest due to our lower CASM.

We also have enough established routes to redeploy our aircraft to the routes that suit the season. Airtran is a very nimble airline in this respect. We don't stick with certain cities year round because they are not profitable year round.

 

[j41driver]

...the new aircrafts...

The plural of aircraft is aircraft.

 

[FlyWolf]

The plural of aircraft is aircraft.

wow, you think? it must be flying those noisy j41 for TSA affecting those brain cells

 

[CitationLover]

Your right, Fuel CASM is now approaching 50% of total CASM. This just increases our advantage as the 737 burns the same amount of gas as the 717 but yet carries 38 more passengers than your 717's (and I won't even begin to compare our 737's with your MD-80's).

whats a lease payment on an 80 to a brand new 737? how about hull insurance on a $4 million dollar airplane versus a $60 million dollar one? last i checked allegiant was doing quite well on the 80.

 

[CitationLover]

You also have to ask how much of this traffic is MKE origination or destination. I believe our BOS, LGA, and DCA flights are timed to connect with our west coast service and vice versa. That means the bigger markets we are actually going after our big west coast cities to the big northeast cities with origination MKE traffic as gravy on top.

once again trans-continental traffic is a low YIELD market. BOS-LAX, LGA-LAX, etc.

 

[CitationLover]

Why wait 24 years to compare CASM's. The battle is now in 2008 for market share in MKE. The only thing that matters in this battle is Airtran's 15 year CASM vs Midwest's 24 year CASM. And Airtran can be profitable at a lower yield than Midwest due to our lower CASM.

We also have enough established routes to redeploy our aircraft to the routes that suit the season. Airtran is a very nimble airline in this respect. We don't stick with certain cities year round because they are not profitable year round.

well keep issuing convertible debt for cash raising purposes. it smacks of desperation.

the point is BOTH airlines are losing plenty these days and it is only worse by YOURS using predatory pricing in MKE. MEH has some deep pockets backing them to make sure AAI does not succeed in MKE (DAL does not want them to be there). sure they will dismantle us piece by piece, but in the long run the new DAL wants MEH in MKE and not AAI.

and a STATION MANAGER is not a credible source for how well revenue wise a station is doing. they will be the second to last to know, after the chief pilot. of course they're going to say they're "happy" with the performance.

with stagnant growth in the foreseeable future for AAI that low non-fuel CASM will only GROW and the bubble may burst.

How does your management know how many seats were bought at discount and how many were bought at full fare business class? I think the only one that know the true avg fare on our routes out of MKE are our bean counters in MCO. I don't even think you will find that information in our second quarter earnings release when it comes out.

it ain't rocket science. think of your management. are they that smart? of course not. ours is the same way.

aviation managers simply use a herd mentality and match fares, ie they legally price fix.